WLFI plunges 25% as $500mln foreign deal sparks U.S. probe – What’s at stake?
March 5 looms...will pressure ease or deepen for WLFI?
Trouble’s knocking on World Liberty Financial’s doors. The Trump-backed crypto firm is now facing pressure from both the market and regulators!
The daily chart for WLFI showed a drop earlier in the month, followed by a period of sideways movement. This is where price has struggled to recover meaningfully.
Each small bounce has been met with sell pressure, keeping the token pinned near the lower end of its recent range. RSI stayed subdued and MACD was in negative territory at the time of writing.
The picture doesn’t improve much if you zoom in. WLFI is down nearly 9% over the past week alone, so buyers are clearly cautious.
And that’s not all…
U.S. Democratic Senators Elizabeth Warren and Andy Kim have urged Treasury Secretary Scott Bessent to review the $500 million foreign investment linked to World Liberty Financial.
They want the National Security Panel Committee on Foreign Investment in the United States to determine whether the deal poses risks.
At the center of the concern is a reported sale of a 49% stake to Aryam Investment, backed by Sheikh Tahnoon bin Zayed Al Nahyan. The transaction closed just days before Trump’s inauguration in 2025, when the project had no live products.
Two executives from AI firm G42 were placed on WLFI’s board as well, adding to the narrative.
Senators Warren and Kim have argued that this could allow foreign influence over a business tied to a sitting president, while also creating potential data-privacy risks for users.
They also mentioned links between Tahnoon’s network and firms like MGX, which previously invested in Binance [BNB] using WLFI’s USD1.
Treasury now faces a 5th of March deadline to respond. AMBCrypto previously reported that U.S. President Donald Trump denied any and all knowledge of the deal.
Final Summary
- WLFI fell nearly 25% this month.
- U.S. lawmakers are pushing for a probe into the $500 million foreign investment in WLFI as well.
